Latin America (LATAM) continues to be one of the fastest-growing regions in the world for video game consumption. With a population of over 650 million people, the region has become an attractive market for game developers and publishers. In 2023, the global gaming market is projected to generate $230 billion in revenue, with LATAM contributing to that growth.
According to a recent study by Newzoo, the LATAM region generated $8.4 billion in gaming revenue in 2022, with Brazil and Mexico leading the region, making it the second-fastest-growing video game market worldwide.
This article will explore the current state of game monetization in LATAM.
Mobile gaming has become a significant driver of video game consumption in LATAM. The increasing penetration of smartphones and affordable mobile data plans has made it easier for people to access games. According to the Newzoo study, mobile gaming accounts for 48% of the total gaming revenue in LATAM for 2021, with a projected growth rate of 10.4% in 2023.
Browser games are also popular in LATAM, especially among younger audiences. These games can be easily played on any device with an internet connection, making them accessible to a wide range of players. However, browser games face significant competition from mobile titles, which offer more immersive gameplay and better graphics.
To effectively monetize games in Latin America, it's essential to understand the payment preferences of gamers in the region. Alternative payment methods have become increasingly important for game developers and publishers in LATAM.
Credit cards are not widely used in the region, and many consumers prefer to use cash or other alternative payment methods. According to data from various sources, alternative payment methods account for over 40% of all online transactions in the region.
One popular alternative payment method in LATAM is Boleto Bancário (cash vouchers). E-wallets like Mercado Pago or PayPal are also widely used in the region. These services allow consumers to store their payment information in a secure digital platform and make purchases without entering their payment details every time. This makes the payment process faster and more convenient for consumers, which can lead to increased sales of digital goods.
Also, it is important to mention online banking and instant bank payments via PIX for Brazil and Mexico.
Another popular payment method in LATAM is prepaid cards, which can be purchased at convenience stores and supermarkets. These cards are used to buy things online, including in-game items and currencies, without a credit card or bank account. Prepaid cards are prevalent among younger audiences who may not have access to traditional payment methods.
According to Newzoo Global Games Market Report, there are over 259 million gamers in LATAM, representing 40% of the total population. The majority of gamers are between the ages of 18 and 35. The report also found that the average gamer in LATAM spent $115 on games in 2022.
Game monetization in LATAM presents both opportunities and challenges for game developers and publishers. The rise of mobile gaming and the popularity of alternative payment methods offer new ways to reach consumers and increase sales. However, the region's diversity and unique payment preferences require a tailored approach to game monetization.
Expanding into new markets is an exciting opportunity for game developers and publishers, and the LATAM region offers great potential for growth. By leveraging the increasing popularity of gaming and alternative payment methods, developers can reach millions of gamers in the region. However, it's important to keep in mind that game monetization in LATAM requires a tailored approach that takes into account the region's unique payment preferences.
That's where 1D3 DIGITECH can be a valuable partner for game developers and publishers looking to expand into the LATAM market. If you're looking to tap into the vast potential of the LATAM gaming market, consider integrating 1D3 checkout, which already supports the most popular alternative payment methods, such as Boleto Bancário, PIX, and online banking. With 1D3 DIGITECH, you can offer your customers a seamless and secure payment experience, increase conversions, and expand your business. Contact the 1D3 Sales Team to learn more.